The Russian ruble has fallen 20 percent Tuesday – Aftenposten

The Russian ruble has fallen 20 percent Tuesday – Aftenposten

The Russian ruble fell around 20 percent in value Tuesday to 80 rubles against the dollar and 100 against the euro.

Just before the clock 14 also had the Norwegian krone fell by over 2 percent against the US dollar, and about 3 percent against the euro and the British pound.

And for the first time in many years, the Swedish crown worth more than the Norwegian.

– No one dares buy something

Chief Economist Bjorn-Roger Wilhelmsen hedge fund Nordkinn Asset Management says to Dagens Næringsliv that there is talk of a “total collapse” in the exchange rate.

– No one dares to buy something. That is why we see such movements as we see today, says Wilhelmsen.

Chief Economist Øystein Dørum DNB says to Hegnar.no that it is simply the absence of buyers.

– Oil prices plunge it is almost Christmas and books shall be closed. There is no one will take risks, says Dørum.

But the ruble has thus Norwegian krone also risen sharply, about 13 to 14 percent clock 14.

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Capital flight from Russia

The value of the ruble has plummeted in recent months, first as a result of Western sanctions and in recent weeks also because of falling oil prices .

The Western sanctions, which caused Russian support to prorussiske rebels in Ukraine, has received international investors to shun Russia and pull money out of the country.

The central bank has so far this year raised rate by 11.5 percentage points in an attempt to limit capital flight and prevent the ruble collapse completely.

The prospect of negative growth is a serious challenge to President Vladimir Putin, who base their regime partly on the economic stability and growing prosperity he has succeeded in establishing in Russia after the chaotic Yeltsin period.

Now this stability in jeopardy because of the ruble collapse that damages Russia’s credibility with investors.

Decline in GDP

The central bank now says that the Russian economy is likely to shrink next year, and the decrease can be up to 4.5 percent if oil prices remain around $ 60 a barrel.

Russian economy is heavily dependent on oil and gas account for two thirds of total exports, despite the fact that liberal economists have long requested that the economy must be disseminated in several areas.

That means varying international oil prices are strong influence on Russia’s balance of payments, and therefore also the ruble exchange rate.

Former Finance Minister Alexei Kudrin wrote Tuesday on Twitter that the ruble decline also due to lack of confidence in the government’s economic policies.

Published: 16.des. 2014 2:00 p.m.